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years,” shifting first to USDC and USDe for all of Maelstrom’s deployments.Maelstrom is a venture fund managed by the family office of Arthur Hayes — co-founder of BitMEX — building a long-term portfolio of venture-stage infrastructure companies powering decentralization.Join the discussion with Scott Melker on Roundtable here.“Maybe I’m a little bit paranoid, but I don’t see why you would use USDT over USDC,” he said, calling the looming GENIUS Act a potential “not-chosen stepchild” moment for Tether.Vaidya believes Washington will try to “convince Tether to come onshore and rebuild its business here in the US.”The GENIUS Act could give regulators exactly that leverage. “There should be a carrot-and-stick model to bring that transparency back home because it is a bit of a systemic risk if everything’s offshore,” he warned.The GENIUS Act, passed by the U.S. Senate on June 17, aims to impose strict reserve-backing rules, audited disclosures and anti-money-laundering requirements on stablecoin issuers. The bill now moves to the House of Representatives for a vote.Tether is incorporated in the British Virgin Islands, yet most USDT liquidity ultimately rides U.S. dollar payment rails. If the bill passes in its current form, Vaidya expects U.S. authorities to demand fuller reserve disclosures and real-time audits — requirements the stablecoin giant has so far resisted.Join the discussion with Scott Melker on Roundtable here.Failing to comply could squeeze USDT’s access to American banking partners and drain a portion of its market share.For Maelstrom, the unknowns outweigh the convenience USDT offers. “You’re taking a little bit of a risk — not because I know it’s a major risk, but because we don’t have enough information to know if it is or not,” Vaidya said. That information gap, he added, is itself a risk.While the final language of the GENIUS Act is still being negotiated, Vaidya’s message to individual holders is clear: transparency matters.“Let’s see what the final version of this bill looks like once it’s actually passed,” he said, “but I would switch over.”Fund manager has a 'paranoid' response to new financial bill first appeared on TheStreet on Jun 26, 2025This story was originally reported by TheStreet on Jun 26, 2025, where it first appeared.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,173.07 +32.05 (+0.52%)Dow 3043,819.27 +432.43 (+1.00%)Nasdaq20,273.46 +105.54 (+0.52%)Russell 20002,172.53 +0.42 (+0.02%)VIX16.32 -0.27 (-1.63%)Gold3,286.10 -61.90 (-1.85%)PortfolioSign in to access your portfolioSign inTop gainersNKE NIKE, Inc. 72.04 +9.50 (+15.19%)SATS EchoStar Corporation 28.81 +3.35 (+13.16%)KTOS Kratos Defense & Security Solutions, Inc. 45.84 +4.51 (+10.91%)SNAP Snap Inc. 8.72 +0.58 (+7.13%)JHX James Hardie Industries plc 27.59 +1.82 (+7.06%)Top losersQS QuantumScape Corporation 6.62 -1.03 (-13.46%)NKTR Nektar Therapeutics 25.76 -3.92 (-13.21%)NEGG Newegg Commerce, Inc. 12.08 -1.49 (-10.98%)PLTR Palantir Technologies Inc. 130.74 -15.57 (-10.64%)MP MP Materials Corp. 32.90 -3.09 (-8.59%)Most activeNVDA NVIDIA Corporation 157.75 +2.66 (+1.72%)LCID Lucid Group, Inc. 2.1200 -0.0800 (-3.64%)PLTR Palantir Technologies Inc. 130.74 -15.57 (-10.64%)F Ford Motor Company 10.80 +0.17 (+1.60%)QS QuantumScape Corporation 6.62 -1.03 (-13.46%)Earnings eventsTrending tickersPLTR Palantir Technologies Inc. 130.74 -15.57 (-10.64%)^GSPC S&P 500 6,173.07 +32.05 (+0.52%)GOOGL Alphabet Inc. 178.53 +4.99 (+2.88%)^IXIC NASDAQ Composite 20,273.46 +105.54 (+0.52%)^DJI Dow Jones Industrial Average 43,819.27 +432.43 (+1.00%)Top economic events